GREY:COLUF - Post by User
Post by
TAPickson Oct 18, 2010 9:35am
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Post# 17575952
Not quite ready yet...
Not quite ready yet...Quite a few Bullish Symmetrical Triangle formations appearing on stocks these days and Colossus is another one. This pattern is a continuation pattern which usually occurs after a large increase in price. Yup, from my last call at $6.27 on a 200SMA play it has posted top gains of 45.7%. After such large gains it is not unusual for people to take profits and drive the price down a little. But this is also where the conflict comes in... Those who missed the boat will buy back on the first pull thinking it will continue past its recent highs, but it doesn't and forms this pattern of up and down. Each time posting a lower high and a higher low to finally culminate at the apex of the triangle and breakout to the up side. Its like a spring being coiled up and then released.
The technical entry for this play is to enter on a breakout of the trend line with high volume. That's the confirmation you're looking for. But as stated before, I'm sometimes a little to eager and get in for a 'look see' when it hits the bottom trend line as it nears the apex. So for now, I would just sit on the sidelines and wait a few days as it gets nearer to the apex. Indicators still have some time to come down and rest a little. Just add this one to your watch list and if you're using QuoteTracker, you can setup an alert on it around $8.50 as a potential trend line breakout.
Click here for chart.